Course Summary
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Presentation Transcript
Course Summary Key Issues in Strategic Reasoning
Timing Matters • Sequential versus Simultaneous Moves • Look forward, reason back • Eliminate then dominate • Mutual best responses • When do I want to move?
Key Ideas • Commitment • Keep rivals off balance • Leverage the future • Extract information
Recipe for Thinking Strategically • Project rival’s strategy • Best respond • Reverse roles • Iterate
Strategy in Practice • Changing the “game” • ROFR clauses • Arbitration rules • Screening contracts • Agenda control
All the World’s an Auction • The Revenue Equivalence Principle • In auctions • In lobbying • In allocating resources within a firm • In competing for price sensitive consumers • In brinkmanship situations • Setting a reserve price • Avoiding the “Winner’s Curse”